about this report - xiamen airlines

2019

年

社会责任报告

Xiam

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es S

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About This Report

Data in this report are sourced from materials released by government agencies, from official documents and statistical reports of Xiamen Airlines, which have been reviewed by relevant departments.

This report is presented in Chinese and English versions, and published in electronic format, which can be read and downloaded from the website of Xiamen Airlines (www.xiamenair.com).

This report covers the period from January 1 to December 31, 2019, with the exception that some contents and data extend beyond this period.

Guidelines Concerning State-Owned Enterprises’ Fulfilling Social

Responsibilities issued by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC)

GRI Sustainability Reporting Standards (GRI Standards) issued by Global Sustainability Standards Board (GSSB)

For convenience of description and reading, “Xiamen Airlines Co., Ltd” is referred to as “Xiamen Airlines”, “the company”, or “we”. Likewise, “Hebei Airlines Co., Ltd” is equivalent to “Hebei Airlines”, “Jiangxi Airlines Co., Ltd” is short as “Jiangxi Airlines”, and “Civil Aviation Administration of China” is introduced as “CAAC”. Local branches are indicated in a two-part form: region plus branch.

This report is about the philosophy and policy in the area of social responsibility adopted by Xiamen Airlines and our branches, and the progress we have made on the economic, social and environmental fronts. Some practices described here revolve around the subsidiaries held by the company.

Period Covered

Descriptive Terms

Sources of Data

Accessibility

Based On

Scope

Contents

28 United to Fight COVID-1932 Carry Out Precision Poverty

Alleviation34 Encourage Volunteer Service36 Cooperation on Public Welfare

Undertakings37 Strengthen Supplier Relationship

Management (SRM)

SafetyEnhance safety management to create best travel experience40 Strengthen Safety Management42 Guarantee Aviation Safety43 Improve Passenger Safety45 Promote Occupational Safety47 Ensure Ground Operation Safety

EnvironmentPursue green development to build a livable world50 Make Our Skies Blue Again52 Create Green Cabin52 Share Our Passion with More People

Engage in and together build a harmonious society

Society26

38

48

Address by Chairman

05 Overview06 Fleet Size07 Corporate Culture08 Strategy and Governance

About This Report

About Us

01

02

04

12 Key Performance Indicators14 Awards and Honors16 2019 Milestone Events

2019 Highlights12

22 Xiamen Airlines and United Nations24 Identify Key CSR Issue of Xiamen

Airlines24 Communication with the

Stakeholders

Sustainable Development22

Index of GRI Indicators

Practice excellent workmanship to provide quality services58 Passenger Service62 Freight Service

Persist in people-centered approach to achieve win-win growth66 Safeguard Rights and Interests68 Achieve Common Development69 Enjoy Career Contentment

Services

Employee

56

72

64

03Address by Chairman

02Xiamen Airlines Social Responsibility Report 2019

Address by Chairman

Time flies, but we remain true to our original inspiration.

2019 was an extraordinary year, not only for our country, but also for us. In the year, the People’s Republic of China celebrated the 70th birthday, while Xiamen Airlines marked its 35th birthday. At this historical juncture for building on past successes to further advance our cause, we had our political baptism through the education with the theme of “remaining true to our original aspiration and keeping our mission firmly in mind”. By commemorating our 35th anniversary, we reviewed the three

major historical missions that we set for ourselves upon our founding: “To serve the reform of the civil aviation system and mechanism, to serve local socio-economic development, and to serve the exchanges between the two sides of the Taiwan Strait”. We further integrated the concept of social responsibility into our corporate governance, corporate culture and business strategy, and we defined a new mission for ourselves in the new era: “Take more people to explore the world”, and articulated our new vision of “Excellent Performance and Steady Growth”. We feel duty-bound to meet passengers’ demand for the ultimate air travel experience and we have endeavored to achieve high-quality development and serve the national strategy. In the process, we have presented a grand blueprint for our future development to all sectors of society.

2019 was also a fruitful year for us in fulfilling our social responsibilities. We spared no effort to support economic development in the Yangtze River Delta region. We established a Shanghai branch, doing our part for the regional initiative of “accelerating the construction of the Shanghai aviation hub and consolidating and enhancing the status of the Asia-Pacific international hub airport”. In response to the call of the State, we actively participated in the construction and operation of Daxing Airport. Xiamen Airlines and its affiliated Hebei Airlines successfully completed their inaugural flights at Beijing Daxing Airport, contributing to the efforts to expand and strengthen the airport and to create a new driver of growth for the nation. We were invited to attend the United Nations High-Level Political Forum on Sustainable Development and the 40th Anniversary APEX EXPO, where we shared our sustainable development practices, spoke on behalf of the industry, told China’s stories, and provided Xiamen Airlines’ solutions for global sustainable development. We also launched the Xiamen Airlines Sustainable Development Plan, which integrated the concept of sustainable development into corporate management. As a result, we have been able to maintain our track record of flight safety, enhance operational efficiency, reduce emissions, and forestall and defuse major risks. In the process, we have achieved win-win cooperation with all sectors of society.

On the “continuous safety” front, we thoroughly studied and implemented the spirit of President Xi Jinping’s important instructions on civil aviation safety work. Moreover, we strictly put CAAC’s 26 measures and Xiamen Airlines’ 96 measures in place, ensuring absolute flight safety. Throughout the year, we constantly reinforced preventive maintenance, achieving a reliability rate of 99.95% for our B737NG fleet, the highest among global fleets. Meanwhile, we properly responded to the grounding and relocation of B737MAX, eliminating serious hidden dangers. In 2019, we had a total of 685,000 safe flight hours and 291,000

takeoffs and landings, up 5% and 6% year-on-year, respectively, testifying to our solid safety record.

On the “low-carbon operation” front, we constantly explored and identified new technologies and did our utmost in the fight against pollution to ensure blue skies, fulfilling our commitment to the sustainable development of the industry and the world. We achieved an annual saving of 110,000 tons of fuel through a wide range of innovative energy conservation and emission projects, including introducing a dynamic cost index, optimizing leftover fuel after landings, filling drinking water according to occupancy rates, implementing dynamic washing of engines, straightening flight routes, reducing thrust takeoffs, improving ascents, and refitting aircraft carbon brakes and installing such brakes on selected aircrafts. Additionally, we improved fuel efficiency by optimizing management and introducing innovative technologies. As a result, we reduced carbon emissions by 346,000 tons per year compared with our flight plans, contributing to the fight against global climate change.

On the “green service” front, we took service as a medium to advocate an “environmentally-friendly, healthy, joyful and sustainable” way of life. In the air, we vigorously promoted the use of environmentally-friendly products. We made every effort to create green cabins by recycling blanket cloth to make slippers and replacing plastic products with degradable and recyclable bamboo pulp products. We integrated Chinese culture and the concept of sustainable development into our “Tianji Gallery” series of service brands, and we launched six boutique services: Tianji Vintry, Tianji Library, Tianji Teahouse, Tianji Cafe, Tianji Steward and Tianji Aesthetics, which transform flights into poetic air travel experience for passengers. On the ground, we established a full-process self-service system enabling self-service check-in, self-service baggage drop-off and self-service boarding through facial recognition. By 2020, 80% of passengers will enjoy intelligent and convenient green air travel.

On the “shared benefits” front, we endeavored to promote the sustainable development of our company and the environment at large, with a view to ensuring harmony and win-win results among our company, our employees and the community. Internally, our commitment to our employees’ sense of achievement and wellbeing remained undiminished, and we made proactive efforts to broaden our employees’ career development channels. To ensure our employees’ physical and mental health, we implemented an employee mental health care plan, and created a unique “home” culture with Xiamen Airlines characteristics. Externally, we gave back to the community by delivering unrivaled services and operating SDGs themed flights. Meanwhile, we actively carried out public welfare volunteer programs and helped our

Zhao DongChairman of Xiamen Airlines

associated poverty-stricken villages improve their infrastructure and develop their advantageous industries, enabling them to achieve comprehensive poverty alleviation ahead of schedule and win the battle against poverty.

Over the past year, our proactive and conscientious fulfillment of our social responsibilities has helped expand Xiamen Airlines’ social influence and enhanced its brand reputation. It has highlighted our corporate purpose of being devoted to “the cause of the Party, standing of the country, national self-esteem, family happiness and personal growth”; moreover, it has injected strong cultural vitality and development momentum into Xiamen Airlines, underpinning the company’s sustainable development.

At the beginning of 2020, we were confronted with the severe test of the COVID-19 pandemic. Xiamen Airlines sprang into action, moving into a “wartime” mode in all aspects and giving first priority to the prevention and control of the coronavirus. We made full use of our advantages as an air carrier, using all our resources to transport materials and medical personnel and bring home fellow Chinese stranded abroad with one charter plane after another. The bridges that we built in the air, our philanthropical programs and our action in realizing the grand vision of a community with a shared future for mankind bear testimony to our unwavering commitment to the people and to the ultimate value that we place on all lives.

The original aspiration and the mission of the Communist Party of China is to seek happiness for the Chinese people and rejuvenation for the Chinese nation. It is also the proudest social responsibility and ideal of Xiamen Airlines as a state-owned company. Looking forward, Xiamen Airlines will remain true to our original aspiration, keep our mission firmly in mind, take concerted actions, and continue to press ahead. Guided by the new development concepts of innovation, coordination, greenness, openness and sharing, we are dedicated to meeting the needs of the people for a better life, and we will continue to strive for sustained healthy and high-quality development to build Xiamen Airlines a prestigious brand teeming with vigor and vitality. Our hard work will continue for building a community with a shared future for mankind and for realizing the great rejuvenation of the Chinese nation.

04 05About Us

Xiamen Airlines Social Responsibility Report 2019

Xiamen Airlines Co., Ltd was founded in 1984. Active participation in China’s pilot program of opening private aviation sector imbues Xiamen Airlines with a spirit of innovation and daring to be first. We are China’s first aviation company that is operated under a modern corporate system, providing passenger, freight and baggage transportation services for domestic, regional and global customers. Thirty-five years of ongoing commitment to sustainable development is what sets Xiamen Airlines apart from other airlines in China, winning high praise from President Xi Jinping as “the epitome of the development of China’s aviation industry.”

Xiamen Airlines, a member of SkyTeam Alliance with an air carrier code of “MF”, has an annual passenger traffic volume of nearly 40 million, and attracts more than 10 million passengers to join our frequent flyer program. We operate nearly 350 domestic and international routes, covering all areas in China, and reaching Southeast Asia and Northeast Asia. As intercontinental routes reaching Amsterdam, Sydney, New York and Los Angeles are successively put into service, Xiamen Airlines stands ready to serve customers in Europe, the Americas and Oceania. By leveraging the connectivity enabled by SkyTeam, Xiamen Airlines is poised to reach customers at every corner of the world.

Xiamen Airlines has always attached great importance to Party building and ensured it drives high-quality development. We commit ourselves to providing heartwarming services that can make customers resonate with the brand and raise their awareness that state-owned enterprises (SOEs) like Xiamen Airlines are working in the best interests of the country and its people. A dedicated champion of the notion of building a community with a shared future for mankind, the company signed an agreement with the United Nations in February 2017, lending further impetus to transform Sustainable Development Goals (SDGs) from vision to reality on a global scale. In January 2018, the world’s only 787 Dreamliner aircraft authorized by the United Nations for promoting SDGs was included in Xiamen Airlines’ fleet, becoming an “ambassador in the air” to aid the realization of SDGs.

Looking forward, Xiamen Airlines will remain committed to accomplishing the mission of “take more people to explore the world”, maintaining current advantage, and relentlessly pursuing transformation and innovation, so as to extend value chain and ensure more customers access our services. Meanwhile, we will build regional hubs, and expand the coverage of the intercontinental network, so that a win-win outcome can be delivered: our customers are provided with affordable and enchanting travel experiences, and our vision of “excellent performance and steady growth” is realized.

About Us

Achievements

China’s only one airline that won “IOSA Safety Outstanding Contribution Award” given by International Air Transport Association (IATA), and acts as an example of “heartwarming customer service” recognized by CAAC

Acclaimed as “the Chinese Airline with the Best Service” during the period of 2012-2019

One of the few carriers in the world and the only one in China to have a 33-year track record of profitable operations

Won the “China Quality Award” given by the State Council, becoming the first company in China’s service industry to receive this honor, as well as the only award-winning airline in China’s civil aviation industry.

Overview

40

10

350

million

million

Xiamen Airlines has an annual passenger traffic volume of nearly 40 million

and attracts more than 10 million passengers to join our frequent flyer program

We operate nearly 350 domestic and international routes

06 07About Us


Mission: Take more people to explore the world

Vision: Excellent performance and steady growth

Core values: Integrity, perseverance, harmony, and enterprise

Corporate purposes: The cause of the Party, standing of the country, national self-esteem, family happiness and personal growth

Safety: Safety comes first, place emphasis on prevention, and take comprehensive measures

Service: Work with integrity, customer-oriented, and provide sincere services

Operation: Follow standard procedures, pay meticulous attention to detail, unleash individual creativity, and pursue excellence

For the management and leaders: Remain responsible, have open mind, pursue innovation, have both integrity and ability

For employees: Practice social etiquette, fulfil responsibility, conduct cooperation, and keep forging ahead

Marketing: Harness the power of smart technologies, win customers with quality services, and dedicate ourselves to win

Culture: Create harmony in the company, promote happiness in families, and support personal growth

Integrity Management: Inspire loyalty, honesty, impartiality, adherence to fact, and integrity

Cost Control: Lead with strategies, integrate innovation into every aspect, and balance the cost control and efficiency increasement

Corporate Culture

Core Ideology

Code of Conduct

Applications in Main Areas

Length

Height

Wing span

Length

Height

Wing span

Length

Height

Wing span

Length

Height

Wing span

Length

Height

Wing span

B737-800 Passenger Airplane B737-700 Passenger Airplane

B787-8 Passenger Airplane

B737MAX8 Passenger

B787-9 Passenger Airplane

Passenger seating capacity

170/184


128


237


287


184

39.47m

12.55m

35.79m

33.63m

12.60m

34.32m

56.72m

16.92m

60.12m

62.81m

17.02m

60.12m

39.47m

12.40m

35.92m

making it one of the youngest fleets in the world

airplanes

Average service age

Fleet SizeAs of January 2020

206

6 years

08 09About Us


·Organization Chart of Xiamen Airlines·

Tianjin BranchQuanzhou

BranchCabin Service Department

Hunan BranchChongqing

BranchShanghai Branch

Planning & Finance

Department

General Flight Operation Department

Aircraft Maintenance & Engineering Department

Fuzhou Branch Beijing BranchHangzhou BranchPassenger Marketing &

Sales Committee

Xiamen Airlines Co., Ltd

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Party Building

Keenly aware of the importance of a sound corporate governance structure and governance modernization, Xiamen Airlines has established a structure incorporating general meeting of shareholders, board of directors, board of supervisors and executive level, which is under the Party leadership, and a system featuring equal rights and responsibilities, coordinated operation, and effective checks and balances. The structure enables shareholders to be kept informed of business performance on a regular basis and provide guidance for the company. During the non-meeting period, the company acts in strict compliance with the requirement of overseeing decision-making on major issues, important appointments and removals, major projects, and the use of large amounts of money, reports the major issues for approval in written form, and establishes a robust information disclosure mechanism to ensure shareholders access timely and accurate information about the major issues and have their rights and interests fully protected.

Xiamen Airlines owns nine subsidiaries, including two independently operating airlines - Hebei Airlines and Jiangxi Airlines, Xiamen Airlines Hotel, Xiamen Airlines Media Technology and Xiamen Airlines International Travel, eight branches located in Beijing, Tianjin, Hangzhou, Fuzhou, Changsha, Quanzhou, Chongqing and Shanghai, and more than 60 domestic and overseas business divisions and representative offices.

Corporate Governance

Development Strategy

·Structure of Board of Directors and Supervisors·

Board of Directors Board of Supervisors

Represent China Southern Airlines

Represent China Southern Airlines

Represent Xiamen C&D

Represent Xiamen C&D

Represent Fujian Investment & Development Group

Represent Fujian Investment & Development Group

Employee Doubling as Supervisor

Chairman,President & Executive Vice President

(Management Level)·Governance Structure·

General Meeting of Shareholders

(Authority Body)

Board of Directors(Decision-making Body)

Board of Supervisors(Supervisory Body)

Strategy and Governance

The year 2019 marks the 70th anniversary of the founding of the People’s Republic of China and the 35th anniversary of the establishment of Xiamen Airlines. At the critical juncture of pursuing sound, sustainable and high-quality development, the company, based on the previously made strategies, updates the mission and vision to give an answer about how the company will develop in the future from the perspectives of theory and practice.

Go global, use hubs to stimulate growth, differentiate business, harness the power of digital technologies, create a sound business ecosystem, and achieve business integration

Guiding principle: Maintain growth momentum through reform, maximize input to increase output, provide standard services and adopt people-centered approachDevelopment philosophy: Achieve stable and quality growthIndustry structure: Ensure core business drives growth and create side business as valuable complement

Create “one axis and two wings” and build double hubs at Xiamen and Beijing

Take full advantage of extensive network to provide quality air transport services, and enable customers have easy access to a wide variety of quality services

Strategic Guidelines

Business Model

Strategic Measures

Strategic Layout

Ensure high-quality Party building drives high-quality development

Build a strategy-focused organization and create synergy between all production factors

Strategic Practice

Governance Foundation

Operational Risks Control Department

Xiamen Airlines has followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, had a firm grasp of and fully implemented guiding principles of the 19th National Congress of Communist Party of China (CPC) and of its plenary sessions, developed a good understanding of the general requirements for Party building in the new era, and practiced Party guideline for organizational work in the new era. By doing so, the company has boosted awareness of the need to maintain political integrity, think in terms of the big picture, follow the leadership core, and keep in alignment with the central Party leadership, strengthen confidence in the path, theory, system, and culture of socialism with Chinese characteristics, resolutely uphold the General Secretary’s core position on the CPC Central Committee and in the Party as a whole, and resolutely uphold the CPC Central Committee’s authority and its centralized, unified leadership. Acting on the general requirements for Party building in the new era, the company has established a comprehensive system for Party building, taken the Party’s political building as the overarching principle, and attached greater importance to performance evaluation of Party building. Xiamen Airlines actively participated in the education campaign with the theme of “remaining true to our original aspiration and keeping our mission firmly in mind”, and strengthened the ranks of “Xiamen Airlines good officials” befitting the new era. All this is to ensure strict Party self-governance, enforce strict Party discipline at the grassroots, and build up momentum of reform. As a result, Party organizations at every level have raised awareness of the importance of fulfilling the responsibility for governance over the Party and strengthened Party building, providing a strong political underpinning for the company’s sound, sustainable and high-quality development.

10 11About Us


Recent years, strengthening compliance management has become an inherent requirement for companies to manage business according to law, guard against risks and achieve robust development. Following the guiding principles set forth in the Guidelines for Compliance

Management of Enterprises’ Overseas Operations jointly issued by authorities including National Development and Reform Commission (NDRC), Xiamen Airlines formulated the Notice on

Strengthening Compliance Management of Overseas Operations, so as to ensure that all business units comply with relevant laws, regulations, international treaties, regulatory requirements, industry standards, business practices, ethical norms, and policies and plans developed by the company itself, and that every aspect and every process of overseas operations are up to compliance requirements. The company also pays great attention to the requirements in the area of labor rights protection, environmental protection, data and privacy protection, intellectual property protection, anti-corruption, anti-bribery, anti-monopoly, anti-money laundering, anti-terrorist financing, trade control, finance and taxation.

Anti-Corruption

Compliance Management

Deepen Reform

Xiamen Airlines is dedicated to pursuing progress while ensuring stability, seeking truth from facts, complying with laws, regulations and Party disciplines，taking simultaneous steps to strengthen institutional building. and acting in strict compliance with “Eight Unswervingly” and “Five Focuses and Five Prioritizes”. To this end, the Standards to Identify Malpractices that

Violates the Central Party Leadership’s Eight-Point Decision on Improving Party and Government

Conduct (trial edition) were developed, which covers 11 aspects including how to punish recreational activities using public funds, unwarranted official receptions, and unjustified perks and allowances. The company prioritizes addressing the practice of formalities for formalities’ sake, and bureaucratism. The Notice on Launching Dedicated Campaigns to Address the Practice

of Formalities for Formalities’ Sake and Bureaucratism was released, clarifying problems that fall into eight categories in four areas. It enabled that 129 problems were identified and corrected. Meanwhile, the Notice on Abstaining from the Practice of Formalities for Formalities’ Sake to Streamline the Work of Frontline Employees was introduced, identifying departments that need improvement. The company has conducted four forms of oversight over discipline compliance. These measures have been widely accepted by employees and achieved remarkable results: 90 people received criticism, education, assistance and penalties this year; 46 pieces of suggestion were dealt with this year according to relevant regulations and discipline.

1 overarching objective,2 upholds3 endeavors3 simultaneously2 ensures

“One Overarching Approach” as strategic guidance for Party building, which can be coded as “12332”

“Five Musts” as concrete measures

“Six Good and Six Strong” as assessment standards

Party-building System

“One Overarching Task” as main theme

Xiamen Airlines has enhanced capacity building to start businesses and fulfill responsibilities to address the deep-seated problems that obstructs the road to development and reform. Zhao Dong, Chairman of Xiamen Airlines, and Wang Zhixue, CEO & President, led the efforts to build Xiamen Airlines Leading Group to Comprehensively Deepen Reform, make overall plans to advance reform, and explore a new path for the company to open up new prospects through high-quality development and comprehensive reform. The company attaches equal importance to organizational reform, enhancing governance of flight training, air defense management, discipline inspection and supervision, Party committee inspection, operation scheduling, quality management and health management, and restructuring Passenger Flight Marketing Committee.

The full success of the Third Session of the Party Congress of Xiamen Airlines held on December 27, 2019 marked a new starting point for the company to comprehensively deepen reform. Encouraged by this success, we will break new ground to ensure the first step is taken in the right direction, run at full speed to shine as the first relay runner, and adopt sound measures to be the first role model in deepening SOE reform.

12 13Xiamen Airlines Social Responsibility Report 2019

2019 Highlights

2019 Highlights

16.8

32.7

Cumulative flight hours:

Freight Traffic: Complaint rate:

Operating revenue:

Total transport turnover:

Safe flight hours:

million5.51

299,000

6.48

685,000

billion ton-km

tons per million

billion

RMB

million trips

Passenger traffic:

39.866

Total number of employees:

25,143

Employees’ volunteer service hours:

12020

Fuel saved:

110,000 tons

Carbon emissions cut:

346,000 tons


2019 Highlights

Awards and Honors

Best Airline

Best Food and Beverage in

Mainland China

Best Airline

Outstanding Enterprise in Energy

Management

The Most Innovative Inflight Entertainment

System Airline

UN SDGs Global Visionary Leader

Airline Passenger Experience Association

(APEX)

Best Entertainment Experience Airline

Phoenix Weekly Lifestyle Travel Award

Civil Aviation Passenger Service Evaluation

Report (CAPSE)


(APEX)

Civil Aviation Resource Net

Xiamen Energy Conservation Association

The 6th China Mag Travel Awards and 2019-2020 Global Chinese Travel

Awards


(APEX)

Best Cabin Service in Mainland China

China’s Top 100 Employers of 2018

and 2019

Zhaopin & Peking University’s Institute of

Social Science Survey

Advanced Unit in Providing Assistance for

the Disabled in Fujian Province 2019

Disability Work Committee of Fujian People’s

Government

Caring Partner

Yao Foundation StarProject for Rural PE Teacher (2nd Session)

Advanced Unit in Finance Work among

Nationwide Trade Unions

All-China Federation of Trade

Unions

The reliability of B737NG fleet ranks 1st

in the world

Boeing

National Advanced Unit in Safeguarding

Rights and Interests of Women and Children

All-China Women's Federation

Outstanding Contribution Partner

2019

Yao Foundation


2019 Highlights

2019 Milestone Events

Xiamen Airlines held an executive meeting to announce the decision about the appointment of main leaders

On February 26, Xiamen Airlines held an executive meeting to announce the decision about the appointment and dismissal of main leaders.

After conducting thorough assessment, Zhao Dong was appointed to be Chairman of Xiamen Airlines, and Wang Zhixue to be CEO and President. At the meeting, both of them delivered an speech expressing their dedication to new posts and responsibilities, and to creating a still better future for the company.

On July 12, local time, HLPF’s Climate Action Summit was held at the United Nations Headquarters in New York. As the only Chinese enterprise representative invited by the President of the UN Economic and Social Council to attend the forum, the only enterprise representative who spoke at the summit and the only representative on behalf of airline companies around the world, Zhao Dong, Chairman of Xiamen Airlines, shared with the participants the company’s sustainable development practice, and delivered an important speech about aviation carbon reduction plans on behalf of airlines companies in more than 200 developing countries.

Represent aviation industry to present at the United Nations High-level Political Forum (HLPF) to tell China’s stories

Announce mission and vision for the new era and launch plans to promote sustainable development

Hao Peng, Secretary of SASAC’s Party committee, conducted a survey at and provided guidance for Xiamen Airlines participating in the thematic campaign of “remaining true to our original aspiration and keeping our mission firmly in mind”

When celebrating the 35th anniversary of its founding on July 25th, Xiamen Airlines announced the mission of “take more people to explore the world ” and the vision of “excellent performance and steady growth” for the new era. On the same occasion, a plan to promote sustainable development oriented towards the new era was launched, an affirmation that the company stands ready to fulfill social responsibility, and remains committed to promoting SDGs.

On August 13th, when the campaign was in full swing, Hao Peng, secretary of Party committee at SASAC and its director, conducted a survey at Xiamen Airlines, providing guidance for and injecting further impetus to the company’s commitment to SOE reform inspired by General Secretary Xi Jinping who emphasized the importance of breaking bottlenecks through reform and daring to be first. Hao’s guidance was followed by the company’s prompt action to set up a leading group to deepen reform, so as to develop “Xiamen Airlines Model” that reflects SOEs’ achievement in deepening reform.


2019 Highlights

Invited to participate in APEX’s 40th Anniversary Annual Conference to share Xiamen Airlines’ solutions about how sustainable development can deliver long-term benefits

Inaugurate Shanghai Branch to chart a strategic course for the company to develop in the Yangtze River Delta

On September 9, local time, APEX’s 40th Anniversary Annual Conference was held at the Los Angeles Convention Center. Xiamen Airlines, as the world’s first airline in support of UN SDGs, was invited to participate in this conference.

Zhao Dong, Chairman of Xiamen Airlines, shared solutions about how the company turns the vision of sustainable development into reality. The solutions received warm responses from the guests.

On September 19, Xiamen Airlines’ 8th branch was inaugurated in Shanghai, indicating that the company’s 34-year dedication in Shanghai has yielded fruitful results.

This also means that Xiamen Airlines, the third airline following Air China and China Southern Airlines to set up branch in Shanghai, has charted a strategic course in the Yangtze River Delta, with an aim to ensure passengers in Shanghai and the Delta region access better quality services and enjoy richer travel experiences.

Become one of the first seven airlines allowed to make maiden flight at Beijing Daxing International Airport

September 25 witnessed Xiamen Airlines’ successful maiden flight at Beijing Daxing International Airport.

As one the first seven airlines allowed to make maiden flight at Beijing Daxing International Airport, Xiamen Airlines assigned the pleasant-looking “United Dream” aircraft to accomplish this mission. This follows the first pilot flight in May at the same airport where the aircraft attracted viewers’ attention to its enchanting blue and elegant design, connecting China’s political capital Beijing with booming Xiamen Special Economic Zone. The flight will be recorded in the annals of Chinese civil aviation industry.

On November 30, the first corporate sports day of Xiamen Airlines was held. This event provides an invaluable opportunity for more than 20,000 employees to identify with a culture that has nourished the company for 35 years since its establishment. Themed on “Stay fit to work for my country for 50 years,” this sports day is intended to encourage employees to keep fit, and endeavor to bring the dream of Xiamen Airlines, and eventually, the Chinese Dream, into reality.

Hold the first corporate sports day to build up the momentum of fitness-for-all program


2019 Highlights

On December 7, the program “Secret Homage to Hero” presented on Finance and Economics Channel of CCTV, China’s most popular state media, hails Yi Lanzhi, inflight support officer with Xiamen Airlines, as role model of dedication to work and rewards her with home decoration free of charge. Yi’s devotion to work has also inspired numerous social media users.

The inspiration is that we can all be extraordinary ordinary people. There are many such people working with Xiamen Airlines. Throughout the year, the list can go on and on. All of them are the best embodiment that ordinary people can achieve an extraordinary feat.

Xiamen Airlines’ role model wins high praise from state media and social media alike

Usher in a new historical period with the success of the Third Session of the Party Congress of Xiamen Airlines

On December 27, the Third Session of the Party Congress of Xiamen Airlines was held. The congress makes a review of the achievements made by the company since the 18th National Congress of the CPC in 2012, conducts a thorough analysis of current challenges and opportunities, and sets forth future direction, objectives and major tasks. Two hundred representatives from various business units of the company reviewed and approved reports submitted by the “two committees”, i.e. Party committee and administrative committee required to be set up in a SOE. Members of the third session of the two committees were elected, marking a new historical period for the development of Xiamen Airlines.

22 23Sustainable Development


Sustainable Development

The beginning of 2019 witnessed the success of the first cooperation agreement between Xiamen Airlines and the United Nations in achieving SDGs. Over the past two years, the company has earnestly fulfilled the agreement, and actively participated in international cooperation. These efforts do not go unnoticed, but receive high praise and warm response from the United Nations and the global community. The two-year joint effort has convinced the two sides to renew the agreement until the end of 2030 when SDGs are expected to be achieved, and to embrace a more glorious future hand in hand.

Xiamen Airlines and United Nations

Continuously assign officials to live and work in villages to identify root cause of poverty, provide targeted measures and apply polices that suit local conditions

Strengthen the ability of poor areas to tap into their development potential. To this end, the company launched “Egret Hope” Project, buying products directly from poor areas and marketing these products on the company’s own online shops

Actively promote exchanges and cooperation across the Taiwan Straits. Since 2017, the company has organized recruitment events in Taiwan on multiple occasions, attracting a total of 245 Taiwan residents to work as flight attendants for the company. In 2018, the company built a “Taiwan Youth Entrepreneurship and Employment Base” in Fujian.

Allocate a million yuan to set up a dedicated fund for caring employees who need help, for providing all employees with medical insurance, and for financing serious illness mutual assistance program

Introduce a care plan to improve employees’ mental health, providing more than 5,000 therapy sessions through phone consultation totaling 919 hours and group therapy on 62 occasions

Partner with iReader to launch a flight themed on “423 Reading Together” to increase public awareness of the pleasure that reading creates and pay enough attention to education

Participate in the public welfare program themed on “Reading enlightens the nation and culture nurtures dreams”, and make donations, help establish e-reading room and contribute to the poor county’s initiative in eliminating poverty through culture and education

Establish a joint working group on energy conservation and emission reduction to develop strategic plans. Throughout the year, 78 energy-conservation and emission-reduction projects were rolled out, saving 110,000 tons of fuel and reducing carbon emissions by 346,000 tons.

Develop and release Xiamen Airlines Sustainable Development Plan, launch 12 major projects and 96 subprojects covering four aspects, namely, continuous safety, low-carbon operation, green services, and shared benefits, and introduce more than 70 measures about energy conservation and emission reduction on a yearly basis

Launch themed flights to celebrate the International Women’s Day for four consecutive years and to raise public awareness of gender equality

Put in place mechanisms and systems that are conducive to promoting gender equality in talent recruitment, remuneration, and job promotion, and protecting female employees’ rights and interests

Goal 1

Goal 2 Goal 3

No Poverty

Zero Hunger Good Health and Well-Being

Goal 4Quality Education

Goal 5Gender Equality

Goal 6Clean Water and Sanitation

Goal 12Responsible Consumption and Production

Goal 11Sustainable Cities and Communities

Goal 10Reduced Inequalities

Goal 9Industry, Innovation and Infrastructure

Goal 8Decent Work and Economic Growth

Goal 13Climate Action

Goal 14Life below Water

Goal 15Life on Land

Goal 16Peace, Justice and Strong Institutions

Goal 17Partnerships for the Goals

Goal 7Affordable and Clean Energy

Renew partnership with the United Nations until 2030

Deepen cooperation with the United Nations Environment Programme, the News and Media Division and other agencies, and expand partnerships with Yao Foundation, China Green Foundation, China Youth Development Foundation, among other organizations

Organize an event themed on “One-Hour Reading” for employees, and a theme service “Tianji Library” for passengers, both of which are to promote the idea of life-long learning

Xiamen Airlines plays an active role in advancing the SDGs globally. It identifies the eight priorities from the 17 sustainable development goals and acts accordingly, and contributes to global sustainable development by making full use of its advantages.

24 25Sustainable Development


Issue Pg. No.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

P32

P11

P37

P52-55

P50-51

P42

P43

P45

P44

P58-63

P66

P67

P68

P34-36

P18/68

Implement of precision poverty alleviation

Anti-corruption

Sustainable value chains

Sustainable use of resources

Respond to climate change

Aviation safety

Passenger health and safety

Occupational health and safety

Customer privacy protection

Product and service innovation

Diversity and equal opportunity

Working conditions and social security

Training and development

Community building

Industry development

Communication with the Stakeholders

To enhance the relevance of disclosed information, the company acts in compliance with GRI Sustainability Reporting Standards (GRI Standards), takes into account macro-policy trends for global sustainable development in 2019, and conducts an analysis of major issues with 15 key CSR issues being identified.

Xiamen Airlines has attached great importance to establishing diversified mechanisms, channels and platforms to promote active and extensive communication with stakeholders, and by incorporating their opinions into decisions, continuously enhanced the company’s capability to fulfill responsibilities.

Identify Key CSR Issue of Xiamen Airlines

Item

Expectations and Requirements Communication Forms or ChannelsStakeholders

Increase taxesLegitimate operationCreate more jobs

Government Project cooperation and working meetingSpecial report, survey and visitStatistical statements

Environment Conserve energy, cut emission and respond to climate changeProtect the ecosystem, and engage in responsible production

Promote low-carbon travelPromote green production

Continuous and stable return on investmentRobust and comprehensive governance structureSound information disclosure mechanismStandardized and effective risk prevention mechanism

Board of directorsGeneral meeting of shareholdersSupervisory board meetingPeriodic reporting and ad hoc reporting

Investors

Expectations and Requirements Communication Forms or Channels

Continuously provide safe and quality servicesGive quick response to customer comments or complaints

Safety management systemCustomer relationship management and membership services

Customers

Realize win-win cooperationAchieve common development

Business meeting and contract negotiationExperience sharing workshop

Partners

Establish information disclosure channels to make the voice of Xiamen Airlines heard in a timely manner

Advertising campaignsMedia interaction

Media

Fair competition and friendly cooperationPromote healthy development of the industryAchieve harmonious co-existence and win-win outcomes

Communication and exchangesBusiness cooperationMutual learning and visits

Industry peers

Stakeholders

Do business with integrityAchieve common development

Suppliers Transparent procurementTraining sessions and technology and expertise sharing seminars

Community Increase input to public welfare undertakingsOrganize voluntary service activities

Cooperate with non-profit organizations, and launch targeted poverty alleviation programsOrganize Egret Volunteer Union public welfare programs

Continuously increase salary and benefitsImprove employee training Establish an effective communication systemtransparent and positive human resources policies

Salary structure reformDiversified employee trainingEmployee representative meetingStaff management system

Employees


Safety ServicesEnvironment EmployeeSociety

SocietyEngage in and together build a harmonious society

Xiamen Airlines has always attached great importance to fulfilling corporate social responsibility, and balancing business growth and social development. To this end, the company has tapped technical prowess to provide services for special missions, taken initiative to organize public welfare volunteer programs, spared no efforts to promote the idea of sustainable development, and teamed up with other organizations that are imbued with a sense of responsibility and integrity to build a community with a shared future for mankind.



Send Charter Flights to Support Wuhan

To ensure medical personnel and supplies reach those who need the most at the earliest time, Xiamen Airlines and its affiliates, Hebei Airlines and Jiangxi Airlines, provided emergency transport services for medical team and supplies from provinces and cities including Fujian, Tianjin, Hangzhou, Nanchang, Ganzhou, Shijiazhuang, Haikou, Yinchuan and Lanzhou to Hubei and other areas that were hit hard by the epidemic. At the same time, we also opened a “green channel” for relief materials donated by overseas Chinese in Paris, Amsterdam, New York, Los Angeles, Tokyo, Manila, Seoul and other places to be sent as quickly as possible to affected areas.

Bring Overseas Compatriots HomeUndaunted by the grim situation that foreign airlines suspended services and countries around the world made adjustments to border entries and exits, Xiamen Airlines pooled resources and coordinated efforts to successively assign 17 charter flights to Bangkok, Manila, Kota Kinabalu and other places to pick up stranded passengers.

As of June 29,2020,

3333

Safeguard Passengers' Life and SafetyWhat Xiamen Airlines attaches central importance to is passengers’ life, safety and health. Keenly aware of what kind of challenges presented by the outbreak of COVID-19 for passengers, the company acted upon CAAC’s requirements, and posted 20 articles on its media platforms, providing passengers with latest information about how to get refund and reschedule. Meanwhile, measures like adjusting and streamlining service procedures, making adjustment to inflight dining standards, practicing social distancing, cleaning and disinfecting cabin and replacing filters were taken to minimize the likelihood of transmission.

Pay Homage to Medical WorkersBearing in mind what medical workers did for combating the COVID-19, Xiamen Airlines sought the guidance from local health commissions, and introduced “Egret Dedication Card” to provide medical workers with free upgrade to business class, VIP access to airport lounge, priority check-in and boarding, and free rescheduling and refund. In March this year, the company announced that more than 40,000 medical workers who had been assigned to Hubei to fight the epidemic are entitled to a free ticket every year for three consecutive years, with no limitation on flight length, and to rights that are originally reserved for gold card holders. All registered medical workers across the country will be rewarded with a “Egret Tribute Card” to enjoy exclusive VIP rights as a token of gratitude.

6118 64

56778879

Key data about Xiamen Airlines’ effort to prevent and control the epidemicby June 29,2020

United to Fight COVID-19

Facing the COVID-19 outbreak that caught us all by surprise at the beginning of 2020, Xiamen Airlines, an enterprise with a strong sense of responsibility, gave quick response at the earliest possible time, prioritized the prevention and control of the epidemic, and waged an all-out war against the highly infectious disease. By fully tapping into our potential in air transport, we have made the most of our available resources to transport anti-epidemic supplies, medical workers, and our compatriots who had been stranded overseas, building bridges in the air to win victories over the epidemic.

stranded passengers were brought back home.

flights for transporting medical supplies

charter flights for sending medical teams

Air transport services for

medical workerstons of medical supplies and relief materials have been transported



Xiamen Airlines Is Taking Actions

On January 31, Xiamen Airlines took the lead in responding to the call of the country and assigned two charter flights to Bangkok, Thailand, and Kota Kinabalu to pick up Hubei natives who had been stranded there. On the early morning of February 1, they were brought back to Xiamen. At the airport apron, the crew was greeted by Zhao Dong, Chairman of Xiamen Airlines, who praised their spirit of being brave and willing to take risks.

On February 13, Xiamen Airlines assigned a special flight transporting 1,648 articles of daily necessities weighing 11,259 kg to Wuhan. This is China’s first charter flight dedicated to supporting medical workers who were fighting COVID-19 in Hubei. This photo shows that before the flight departed, Wang Zhixue, CEO & President of Xiamen Airlines, told the crew to take care of themselves and ensure timely and safe delivery.

“It's a bounden duty of Party members and officials to come forward in times of danger or emergency. Responding to the call of our motherland, and bringing our compatriots back home is a glorious mission,” said Captain Bi Jianqiang who directed MF8663 flight to pick up Hubei natives who had been stranded in Kota Kinabalu.

“United, we can overcome any kind of difficulties,” said Captain Wang Dong who directed a special flight bound for Bangkok on January 31 to bring stranded Hubei natives back home.

“It’s my honor to bring hope to the people of Yichang,” said Gao Jinhua tearfully, a flight attendant who is a native of Yichang, on an escort flight for medical workers on February 11.

“This is the moment when I share weal and woe with the Chinese people,” said Myles Bernard Weston, an Australian who was assigned to fly MF8779 on February 12 to deliver medical supplies to Wuhan.



First Secretary Living and Working in Poor VillagesXiamen Airlines assigned two employees to serve as first secretary living and working in poor villages, namely, Tanghuan Village, Pinghu Township, Gutian County, Ningde City, and Houyan Village in the same city, Fujian Province. They helped villagers increase confidence in their own ability to lift themselves out of poverty and see that they can access the education they need to do obtain. In 2019, the company allocated over half a million yuan to finance targeted poverty alleviation programs and improve infrastructure in the two villages. By the end of 2019, all villagers had been lifted out of poverty.

A standardized plant to process edible fungi produced in Houyan Village was put into operation in the fall of 2019. This is a key initiative proposed by Lin who sought support from relevant authorities to allocate more than 1.6 million yuan to help villagers get rich.

Nestling among mountains, Houyan Village has an edge over villages located in the plains in terms of climate, which is favorable for the cultivation of snow fungus. As soon as Lin arrived, he lost no time in conducting a survey of local conditions. He found that the mountainous area is endowed with rich vegetation and wreathed in mist, creating an ideal condition for cultivating premium snow fungus. He was fully aware that the key to rural revitalization lies in developing industry that can tap into local potential and increase residents’ income. When he raised this idea to the secretary of village Party committee, they clicked right away. Then the idea was brought to a brainstorming session participated by villager representatives who believed that villagers have had a firm grasp of cultivation techniques, but needed a standardized plant where product quality can be assured and the increase of tax revenue can be expected. To turn this vision into reality, Lin, along with village officials, pooled financial resources from special funds allocated by provincial department of finance, Xiamen Airlines’ assistance funds and industry development funds appropriated by relevant government agencies to have the plant built and put into operation.

Case 1

Case 2

Follow the development philosophy of “Green Mountains Are Gold Mountains”

-- Lin Yihui, first secretary of Houyan Village

When a contractor finished his work for a small project in Tanghuan Village, he bought cigarettes and wine for Liu Linhui to express his gratitude. Seeing the expensive stuff, Liu tactfully turned it in the form of financial resources to the villagers.

To increase income of the village collective, Liu conducted many surveys and consulted with villagers, and decided to partner with a company to build a storage house for edible fungi. This way, limited funds can be leveraged to attract private investors, bringing more sources of income to villagers and adding revenue to the village. After multiple rounds of hard negotiations, the company agreed that guaranteed rate of return would increase to 8%, and that all operating expenses would be borne by the company. But at the same time, the boss was perplexed: Why Liu would put so much effort in negotiations? After all, it is the villagers, not him, who will benefit from the business. Liu said with his disarming honesty, “Project funds don’t automatically find their way to the village. I have to work very hard to help villagers access the resources they badly need. And even a little bit of money saved through negotiations can go a long way. That’s what I have been taught by my employer, Xiamen Airlines.”

Reject contractor’s gift and reinvigorate village economy

-- Liu Linhui, first secretary of Tanghuan Village

·Mr. FreshMall, an e-commerce platform owned by the company, sells a wide range of products like edible fungi, fruit and tea from poor areas in provinces including Fujian, Xinjiang, Jiangxi and Gansu. Annual sales proceeds exceeded RMB 2.35 million, providing much-needed help for these areas to shake off poverty through their own efforts.

·Besides, we organized five trade fairs in Xiamen and Fuzhou to present products from southern Fujian, creating more opportunities for poor areas to sell agricultural products.

·A donation of RMB 250,000 per year for each poor village

Carry Out Precision Poverty Alleviation

Designated Targets of Assistance



In 2019, Youth League Committee at Xiamen Airlines led the Egret Volunteer Alliance, teamed up with its 10 members including Xiamen Customs, Sunnews, and China Unicom’s Xiamen Branch, and aligning with UN SDGs, launched a series of public welfare programs themed on “Join Me to Build a Beautiful China”.

Encourage Volunteer Service

Beat Air Pollution

On June 5, 2019, the 48th World Environment Day, volunteers joined students in classes to discuss how to prevent air pollution, take on a more eco-friendly lifestyle and make contribution to building an ecological civilization.

Carry Forward Lei Feng Spirit in the New Era

In March, Xiamen Airlines rolled out a series of campaigns across the country under the theme of “Carry Forward Lei Feng Spirit and Strive to Be a Role Model in the New Era”. Volunteers were organized to provide assistance for the vulnerable, as well as learning opportunities about airplane etiquette rules for kids and tourists at schools, tourist attractions and nursing homes.

Highlights in Volunteer Service

3000

12020Key Performance Indicators

volunteers participated in the whole year

Providing

hours of service



Yao Foundation· Join auction to promote public welfare undertakingsIn August 2019, Xiamen Airlines provided communication resources as auction items to facilitate charity auction of Yao Fundation. This auction raised RMB 200,000 and all the money was donated to Yao Fundation charity project.

· Train PE teachers to boost rural educationIn 2019, Yao Foundation Star Project for Rural PE Teacher was launched in Xiamen. Xiamen Airlines assigned personnel to act as coordinators, and provided free transportation services for more than 200 teachers from rural areas in Guangxi, Shanxi and Hubei to receive a training program in Xiamen. The program is dedicated to improving professional expertise of teachers who are non-PE majors.

China Youth Development Foundation (CYDF)

At the end of 2019, the first Xiamen Airlines SDGs City Exploration Competition was held. A fundraising fete with CYDF was set up alongside the competition, raising funds worth RMB 13,310 which was donated to CYDF’s “Project Hope 1+1”, providing one-year assistance for 13 poor students who are receiving compulsory education.

China Green Foundation (CGF)

As one of the largest environmental protection foundations in China, CGF has remained to be a devoted partner of Xiamen Airlines in launching public welfare programs. The two sides have reached consensus to leverage respective strengths and work together to advance SDGs.

Standardized Procurement Management

Xiamen Airlines has developed SRM procedures and handbooks including Regulations on Assessing Suppliers, Regulations on Supplier Development and Accessibility, and Regulations on Supplier Master Data Management. At the same time, standardized procedures for reviewing suppliers’ qualification, and for submitting the list of would-be suppliers to department managers’ meeting for discussion and approval have been put in place, and templates used for creating supplier background survey forms, on-site inspection and assessment forms and survey reports have been formulated. In this way, the company is able to manage the qualification and quality of suppliers at source.

Supplier Rating Management

Xiamen Airlines has adopted a differentiated management approach featuring dedicated databases for all suppliers, qualified suppliers, contracted suppliers and blacklisted suppliers. Meanwhile, a procurement management platform is being built to ensure that the company harness the power of digital and smart technologies, and that procurement follows sound procedures.

Building sustainable cities and communities demands joint efforts. Xiamen Airlines has expanded partnership to form complementary advantages in creating public welfare programs, and embark on a journey to a brighter future with partners.

Xiamen Airline has been a deeper believer that a sustainable supply chain empowers both upstream and downstream enterprises. In 2019, the company developed a sound structure to strengthen SRM, and prevent risks that may arise in the supply chain. All this is to ensure our passengers can access better services, which in turn will lend further impetus to the company’s high-quality development.

Cooperation on Public Welfare Undertakings

Strengthen Supplier Relationship Management (SRM)

Supplier Structureand the number of effective suppliers totaled

In 2019, the total number of registered suppliers was

3385 621Regional Composition of Suppliers

Global

96

Domestic（other than Fujian)

1616Fujian

Province

1673

Regional Composition of Effective Suppliers 2019

Global

35

294Domestic

（other than Fujian)

292Fujian

Province



SafetyEnhance safety management to create best travel experience

Safety is of paramount importance to air transportation. During the past year, we subjected ourselves to the most rigorous standards and most detailed measures to ensure the ultimate responsibility of safety is fulfilled. Showing zero tolerance for safety hazards, the company acts in strict compliance with a guiding principle that personnel in charge of Party building and administrative tasks are equally accountable, each position is responsible for both the Party and the company, and anyone who has failed to fulfill his or her responsibility shall be held accountable. A management mechanism featuring that high-level managers devote large amounts of time to safety, and department managers pay complete attention to safety was put in place. Standards and procedures for safety management, and safety supervision system showed continuous improvement. Meanwhile, the company is exploring the running of a risk management model and the establishment of a multi-dimensional safety system that can deal with all risks associated with air transportation.

41Xiamen Airlines Social Responsibility Report 2019


4.45%236,800

Serious human error per 10,000 FH stands at

0.018

236,800 safe takeoffs and landings, representing a year-on-year increase of 4.45%

230,0001,480,000

230,000 people take the exam about safety education on e-learning

1,480,000 people are provided with online learning opportunities.

545Provide 545 opportunities in nine training sessions of safety management

566,800 hours of safe flight, representing a year-on-year increase of 4.61%

4.61%566,800

Xiamen Airlines acts in strict compliance with laws and regulations governing safety, such as Safe Production Law, Civil Aviation Law, Emergency Law and Anti-Terrorism Law, develops a safety management system (SMS) covering the aspects of laws and regulations, accountability, risk management, safety supervision and audit, and improves security management system (SeMS) and regulations on network and information security management. These mechanisms and systems have laid a solid foundation for the company to maintain safe operation. In 2019, having developed a good understanding of General Secretary Xi Jinping’s guiding opinions on civil aviation safety, Xiamen Airlines saw it that 26 regulations formulated by CAAC were strictly enforced and 96 corrective measures were taken to ensure 100% aviation safety.

Strengthen Safety Management

Xiamen Airlines established an aviation safety committee as the company’s highest-level organization for safety management. This committee is tasked with the responsibility to develop, implement and continuously improve the company’s safety management system, assess the company’s important policies about safety, make decisions and manage and supervise their implementation. The general manager of the company, as the principal person charged with safety responsibility, is responsible for appointing a safety director, establishing a safety management department, and putting in place a structure that ensures all technical posts and all managerial levels are responsible for safety management.

Executive Vice President and Chief Officers of each business

All offices and teams

All members

Chief Safety Officer

CEO & President

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Administrations and communications

Communications

Safety Management Structure

In 2019, acting in compliance with CAAC and other competent authorities, taking into account the company’s organizational structure and adjustment of posts, Xiamen Airlines made full revisions to safety management handbooks and embedded the contents of “mandatory self-assessment” and “safety management of wet lease operation” into the handbooks. Meanwhile, the company continuously improved standards of accidents and errors, meted out strict punishment to those who break the rules, or do not follow checklists and standard operating procedures, and ensured those involved are held accountable.

In 2019, Xiamen Airlines adjusted the organizational structure of the Safety Supervision Department. The comprehensive safety and risk management group was retained, flight, operation, maintenance, ground support, and dangerous goods supervision groups created, and four managerial posts and seven supervisory posts added. At present, the company has 139 full-time safety specialists who take in charge of information processing, risk management, internal evaluation, incident investigation, and organization and coordination of safety management in various departments.

The company has developed 64 sets of performance indicators. Among them, eight sets are related to operating results, six sets show safety fundamentals, and ten sets measure safety management. The operating process set incorporates 40 leading indicators to deal with five core risks including controlled flight into terrain (CFIT), veer-offs and overruns, airborne conflict, and runway incursion, and three major risks associated with cabin safety, ground scraping, and agents. In this way, key operations and processes are subject to monitoring and early warning. In 2019, the company released 12 issues of Monthly Report on Measurement and Monitoring of Safety

Performance Indicators, which triggered 58 early warnings.

System Construction

Institution Building

Risk Management and ControlSafety management

organizations under the departments



In 2019, Xiamen Airlines combed through the safety management system (SMS), improved an operating model that focuses on risk management, and is based on safety information, evaluated by safety supervision, and driven by performance, and creates a linkage between flight control and risk management. At the same time, flight training system was optimized, standard training package (STP) introduced, and standard operating procedure (SOP) unified. Qualification inspections were conducted on a regular basis, and the reform of flight scheduling standard introduced.

Xiamen Airlines has enabled smooth running of operational and command system to improve safety performance management, conducted self-examination and self-correction to realize self-improvement, and improved risk control system. These achievements are further enhanced by IT application. The first-phrase acceptance of intelligent flight recovery system was completed, technologies that can be used both for forecasting flight route weather and for automatic warning were developed, the building of an information system and R&D of Xiamen Airport A-CDM system was well under way, and aircraft performance management system was launched. These technologies have helped Xiamen Airlines enhance capacity building in monitoring and controlling risks.

In accordance with the Regulations for Dynamic Management of Air Defense Safety Classification

in East China Civil Aviation, the company's own Aviation Safety and Security Plan, and SeMS requirements, coupled with initiatives like Safe Civil Aviation, Safe Flight, Safe Freight, and mandatory self-examination, Xiamen Airline has launched monthly rolling programs and annual all-encompassing plans to conduct inspection and assessment of more than 100 programs. The final results show that the company scored 92 points in the evaluation of air defense safety with a rating of green which indicates safety.

Keenly aware that high-quality flight is guaranteed by high-quality maintenance, Xiamen Airlines has established a long-term working mechanism to highlight the importance of “zero tolerance for safety hazard”. To this end, the company has developed rigorous standards for performance evaluation to ensure each employee has clearly-defined safety responsibilities, improved safety performance management, and enhanced management and control of risks associated with maintenance routines. Preventive maintenance is regularly performed, a system to prevent in-flight engine shutdown optimized, preventive measures based on civil aviation case studies, and evaluations on the effectiveness of aircraft maintenance program and aircraft health monitoring system carried out. These efforts have paid off: Service difficulty reporting rate per 10,000 FH in 2019 was 7.55, a decrease of 0.79 compared to last year, while maintenance-related abnormal incident rate per thousand was 0.87, falling by 0.42 from last year.

Close coordination among departments of flight, aircraft maintenance, cabin, security, ground support, and operation control enables Xiamen Airlines to have zero error in each flight and escort passengers to their destinations safely.

Guarantee Aviation Safety

Flight Safety

Operational Command Security

Security Guarantee

Maintenance Safety

Service difficulty reporting rate per 10,000 FH in 2019 was 7.55, a decrease of 0.79 compared to last year

Maintenance-related abnormal incident rate per thousand was 0.87, falling by 0.42 from last year.

7.55

0.87 Pursue professional excellence

Improve Passenger Safety

Safe Drinking Water

Safe Food Service

The Skill Contest for Aircraft Maintenance Team Leaders and Annual Review and Commendation Ceremony in Fujian Province Civil Aviation Sector 2019 was jointly hosted by Fujian Provincial Federation of Trade Unions, Trade Union of Civil Aviation East China Regional Administration, Xiamen Civil Aviation Safety Supervision Bureau, and Fujian Civil Aviation Safety Supervision Department on October 24. At this event, Xiamen Airlines’ aircraft maintenance team won the first place in all three categories of awards.

Having no tolerance for unqualified sampling inspections of onboard water quality, Xiamen Airlines has monitored onboard drinking water quality on a regular basis to ensure hygienic standards are met on all flights. There was no case last year that shows failed results found by CAAC. The acceptance rate reached 93.7%, up 15% from the previous year.

With ongoing commitment to standardized, well-structured and institutionalized management, Xiamen Airlines independently developed aisle device for airline service trolley which was a patent granted by national patent office, and formulated Dispatcher Operation Specification for Aviation Catering Company to share rich experiences with the whole industry. Xiamen Airlines has applied the same rigorous standards of flight safety to food safety. To this end, the company has strengthened the building of a food safety system, built a high-caliber team devoted to safety management, created eco-friendly factories, and become the first Chinese company to introduce a temperature and humidity monitoring system to intelligently monitor temperature and humidity at refrigeration houses, warehouses and factories.

The acceptance rate reached

93.7%up 15% from the previous year.



2250

flights

In 2019, 22 flights returned or operated alternative landing for passengers who suffered unexpected injury and illness

medical flights for transplant organs

Provide Medical Assistance

Promote Occupational Safety

Case 1

Case 2

On January 20, a 7-year-old girl had convulsions on Xiamen Airlines MF8321 flight (from Hangzhou to Sanya) about 10 minutes after take-off. Since there was no doctor among passengers on that flight, flight attendants followed the emergency rescue procedure and provided emergency assistance for the girl, while the crew decided to return to Hangzhou in no time. At the same time, the ground support department followed the emergency response procedure, sending the girl to the nearest hospital for treatment as soon as the plane touched the ground. Xiamen Airlines’ quick response enabled the young passenger to escape from the unpredictable danger.

On May 1, about 15 minutes before the landing of Xiamen Airlines MF8585 flight (from Fuzhou to Hongqiao), a passenger on the plane found that his companion was not looking well. No sooner had he tried to find the problem than his partner passed out. The cabin crew immediately took emergency response measures, promptly set up a “Green Channel in the Air”, and sought help from ground support to see the passenger being brought back to safety.

To better protect passengers’ personal privacy, in 2019, Xiamen Airlines assigned a data protection officer (DPO) to lead the company-wide efforts in protecting personal data in a systematic way.

Xiamen Airlines has taken concrete actions to prevent problems that may cause harm to pilots’ mental health. During the past year, 224 talking therapy sessions were given to pilots, and experts from CAAC’s Aviation Psychology Research Office were invited to give lectures about mental health. The company’s Training Department partnered with the school of military medical psychology at Air Force Medical University, and applied for research program of psychological selection and related standards to innovate pilots’ mental health management from multiple dimensions.

Fatigue management room was put into use in December 2018. In 2019, the room witnessed 1,000 physiotherapy sessions provided for pilots who recovered from fatigue and enhanced physical prowess.

Keenly aware of rescue difficulties in the event of emergencies which may arise in isolation area of airport apron, Xiamen Airlines has popularized medical knowledge of how to save oneself and help others effectively respond to emergency situations among frontline employees, and launched the first emergency rescue drill themed on “Blue Sky Guardian Volunteer Alliance.”

Align with domestic and international laws and regulations on personal data protection

Xiamen Airlines has successively updated Privacy Notice and Children’s

Privacy Notice to keep passengers well informed of how the company has collected, shared and used personal data. Passengers can be assured of their right to data protection through correcting, deleting and cancelling their accounts with Xiamen Airlines’ website, APP and other platforms.

Leverage technical competence and managerial expertise to safeguard passenger privacy

Xiamen Airlines has taken effective measures that are widely recognized by the industry to enhance security protection, and increased the robustness of the system by improving organizational structure and institutions, strengthening personnel management and developing products and technologies. The company has passed the certification of ISO27001, an internationally recognized best practice framework for an information security management system (ISMS), and the certification of PCI DSS (Payment Card Industry Data Security Standard) in the area of third party payment industry data security standard, which includes annual validation of compliance, and assessment and rating of network security. The recognition is a clear testament to Xiamen Airlines’ ongoing commitment to keeping personal data secure.

Impose tight control on the right to access personal data

We have imposed tight control on the scope of personnel who have the right to access personal data, and entered into data processing agreements (DPAs) with more than 100 suppliers, so as to strictly fulfill confidentiality obligations and responsibilities.

Secure Passenger Data

Pay Attention to Pilots' Mental Health

Pilot Fatigue Monitoring

Frontline Employee Health Management



Ensure Ground Operation Safety

Anti-terrorism and Emergency Response

Fire Prevention

Ground Handling Agents

On the afternoon of April 29, a lecture themed on “Cut calories and exercise more to improve heart and brain health” was attended by more than 100 employees from various departments who developed a good understanding of early symptoms of high blood pressure and coronary artery disease, oral health, and harms caused by oral diseases to heart and brain health.

Guided by the principle of “building basic infrastructure, focusing on training, prioritizing drills, and attaching great importance to supervision”, Xiamen Airlines has paid great attention to fire prevention, and enhanced capacity building in this regard. Online knowledge training and offline training for evacuation conductor were offered, and events including on-site immersive learning, fire extinguisher training and related contests were held to enhance employees’ ability to evacuate and escape.

Emergency response drills to treat dangers in hazardous chemical warehouses and fire control rooms, and to handle explosives, in combination with exercises to deal with anti-terrorist attack on headquarter-based departments, and anti-collision in the crossings of freight control areas were staged. Meanwhile, an all-encompassing system covering the aspects of human defense, physical defense, and technical defense to maintain order, fight terrorism, prevent risks and respond to emergencies were put in place. The company also enhanced information sharing with relevant authorities such as airport police through security information platform to jointly conduct information assessment. Plans for police response to emergencies arising from passenger and freight marketing and check-in spots were developed to enhance internal prevention and control.

The company conducted safety reviews of 18 domestic and overseas terminal agents located in cities like Zhuhai, Lanzhou, Wuhan, Sydney and Kuala Lumpur. The agents are closely monitored in their operations and urged to make improvement, so that operational safety in these places can be assured.

As new hygiene inspection standards for dining room were formulated, the inspection was conducted on a regular basis with timely feedback to improve the level of hygiene. Employees were offered with tips about nutritious diet to enhance their awareness of healthy lifestyles.

Care for Employees’ Heart and Brain Health

Promote Healthy Diet



Climate change is both a determining factor of global development, and a goal of SDGs. As green and low-carbon development is embraced by the whole world, aviation industry, a source of carbon emission, can take proactive measures including aircraft model upgrade and technological improvement to join the global initiative of tackling climate change. Xiamen Airlines remains committed to low-carbon operation, constantly exploring and discovering new technologies, and sharing our solutions with the industry. All this is to enable that green development becomes a conscious effort of people in our industry and across the globe. In this way, we can build a livable world.

EnvironmentPursue green development to build a livable world



To meet the State Council’s requirement of “making our skies blue again”, and take concrete steps to achieve SDGs, in 2019, Xiamen Airlines adjusted the structure of Energy Conservation and Emission Reduction Committee to increase the efficiency of work in this regard.

Dedicated Organization

Energy Conservation and Emission Reduction Measures

Precise Filling of Drinking WaterBased on indicators such as aircraft model, flight distance and passenger load factor, the company made a sound assessment of drinking water volume, bringing down fuel consumption by 1,171 tons throughout the year.

Equip the Plane with “Power Bank”Auxiliary power unit (APU) provides cabin air and electric power before the engines are started. But its disadvantages include low fuel efficiency, a large amount of exhaust gas causing pollution, and a loud noise. To address this challenge, Xiamen Airlines broke new ground with the introduction of bridge-mounted equipment used before flight, during transit and after flight, equipping aircraft with “power bank”, resulting in less use of APU and the reduction of 1.35 tons of fuel throughout the year.

In 2019, Xiamen Airlines launched 78 programs on energy conservation and emission reduction. Among them, 25% of the total adopted innovative methods.

Xiamen Airlines is the first airline in the industry that has adopted dynamic cost index to effectively select optimal flight speed. This approach has not only reduced the planned fuel volume by 340 kilograms for each flight, with 3,666 tons of fuel being saved, but also effectively reduced the risk of overweight landing entailed in excessive fuel volume.

Dynamic Cost Index

“Shortcuts” in the AirXiamen Airlines has optimized temporary air routes to find the shortest flight distance, reducing it by 2.69 million kilometers, saving 9,195 tons of fuel, a feat that makes it rank 4th in the industry.

Frequently Engine CleaningThe company found that cleaning engines more frequently can effectively increase their power. Encouraged by this finding, we have optimized water washing plan, saving about 8,300 tons of fuel throughout the year, which represents a year-on-year increase of 8%. EcoPower engine wash system is our first choice to create a full-closed loop inside the system and avoid environmental pollution in the first place.

Carbon Emissions Monitoring System

We have independently designed and developed a system to monitor carbon emissions. This system features the compatibility with both domestic and international carbon markets, the accessibility to Xiamen Airlines, Hebei Airlines and Jiangxi Airlines, and the flexible use of four monitoring algorithms.

Paperless OperationsThe company has adopted electronic flight bag (EFB) solution to digitize all our flight dispatch documentation. On July 11, dispatch materials were removed from the entire fleet, ushering in a new period of paperless operations for the company.

110,000tons

Fuel saved:

tons

Carbon emissions cut:

346,000

kg

Fuel consumption ton-km reached

a decrease of 3.9%0.28Fuel consumption of the same model dropped by

0.4%

Make Our Skies Blue Again

2.741Hourly fuel consumption was

down 0.5%

tons

Flight Operation Energy

Conservation Group

Aircraft Maintenance

Energy Conservation

Group

Ground Support Energy

Conservation Group

Comprehensive Coordination

Group

Carbon Emission Management

Working Group

Energy Conservation and Emission Reduction Office

Leading Group



United Dream Themed Flights

Create Green Cabin

Share Our Passion with More People

Xiamen Airlines has replaced single-use consumables used in the cabin with bamboo products, and ensured all inflight products are eco-friendly. Paper cups made of bamboo pulp have replaced the previous plastic cups, meaning that 9,333 20-year-old trees are saved on a yearly basis. The benefit is even bigger, considering that 0.066-hectare land can support 33.3 trees on average, representing an increase of about 18.67-hectare land to grow forest.

Statistics show that Xiamen Airlines needs to replace nearly 30,000 blankets and 40,000 seat covers every year. But instead of throwing them away, we have launched a “Egret Textile” program, selecting and disinfecting these old materials to make slippers. In this way, we have not only protected the environment, but provided passengers with more comfortable slippers, and achieved sustainable development.

As “ambassador in air” for the United Nations SDGs, the United Dream aircraft embodies Xiamen Airlines’ ongoing commitment to promoting SDGs on a global scale. Moreover, the United Dream themed flights have served as an appealing means of raising public awareness of SDGs.

These flights were held in 2019, namely “Run for Clean Seas” in cooperation with United Nations Environment Programme (UNEP), “423 Reading Together” with iReader, and “ACT NOW! For Carbon Reduction” with UN DPI. According to incomplete statistics, the exposure of the three themed flights exceeded 490 million.

Egret Bamboo

Egret Textile

The United Nations Correspondents Association (UNCA) delegation are with us

Rediscover the pleasure of reading

Call for personal carbon-reduction actions

Arouse enthusiasm among our foreign friends

Join us in“423 Reading Together”

Fly for a Better World

The initiative of“Run for Clean Seas” calls people to reduce the use of plastic products and protect the marine environment

Gift for Sea Guardian: Partner with UNEP to make eco-friendly wheat straw utensils, shopping bags, and Clean Seas series postcards

“Encourage Reading Card” for rural kids



SDGs City Exploration Competition‘Run for a better world’ Xiamen Airlines SDGs City Exploration Competition is another themed event that Xiamen Airlines holds offline. Together with the themed flights in the air, it complements the ground part and enhances the influence of SDGs. Players and the enterprises participate in the race were educated more about the Goals through games, themed booth and other creative interactions. The featured city exploration competition will be held regularly in different cities to promote the Sustainable Development Goals in the future.

On December 22, 2019, the 1st race was successfully held in Xiamen. More than 160 groups of players, which is more than 800 people participated in it. 15 mysterious tasks, which are related to Sustainable Development Goals, were randomly set in the city. Through simple team challenge game, participants could understand the meaning of SDGs. The first competition was endorsed and participated by China Youth Development Foundation, YAO Foundation and China Green Foundation, which enhanced the influence and credibility of the competition. A charity sale area was set up on the spot, and all the donations were donated to the “Project Hope 1+1 " to provide help for students in rural areas with economic difficulties.

The competition kicks off

Young “actors” are warming up

“Actors” are learning about how to rescue and escape in extreme conditions

“Actors” are doing some research about how to do waste sorting

“Actors” are learning the types of grains

The special team comes from countries other than China, Malaysia and Finland

“Actors” are shining in the poetry recitation contest

Six teams received awards

Run for a Better World



Quality services are what make Xiamen Airlines known to passengers. Over the past 35 years, the company has devoted to providing services that can resonate with customers in their daily life. Working with integrity and keeping customers at the center of business is our service commitment. We have instilled our services with the spirit of discovery and innovation, so as to set high standards for the industry in China.

ServicesPractice excellent workmanship to provide quality services



422 indicators had been set to assess service delivery capabilities

12 From July to September 2019, mock reviews had been conducted on 12 service units to test the service delivery capabilities.

Tianji Aesthetics

Tianji Florist, and Tianji Etiquette Instructor

Tianji Sommelier

Tianji Tea Master

Tianji Barista

Senior broadcasters, and anchors from Voice of Xiamen

Train and form the China’s first “Flight

Steward” team

Tianji CafeTianji TeahouseTianji Vintry Tianji

LibraryTianji

Steward

Tianji Gallery

Poetic Flight ExperienceXiamen Airlines is committed to carrying forward traditional Chinese culture and innovating contemporary culture through cabin services. “Tianji Gallery” services embody this effort to continually identify passengers’ needs and enrich their inflight experiences.

A Poetic Journey Savoring

Chinese Culture

Professional

Delicate

International

Innovative

Hum

anistic

Core Concepts and Positioning

Enrichment Services

A thorough review of our 35-year experience and innovation achievement recognized by China Quality Award has inspired us to improve service quality management system featuring “double engines, four systems and multi-dimensional interactions” and enhance its application. Furthermore, we have developed Handbook for Service Quality Management Cycle Empowered by

Double Engines to sum up our experiences in this regard.

Passenger Service

Service Quality Management System

Service Design

Service Realization

Culture

Institutions

Customer Needs

Customer Satisfaction

Service Improvement

Service Support

Negative Customer Service Review

Customer Needs Identification

Product Design

Service Assessment

Service Early Warning

Service Commitment

Service Standard

Qualification Training

Service Strategy

Wel

l-stru

ctured Strategy

People-centered Performance Evaluation

High

ly-c

usto

mize

d Res

ources



Seamless JourneyEasy Transit

Xiamen Airlines has promoted Through Check-in. As of December 2019, 29 domestic destinations and 12 overseas destinations were included in this service, with the former providing services for 95.19% of transit passengers taking the company’s outbound flights and the latter for 52.05% of transit passengers taking inbound flights.

Overseas Destinations

Beijing, Changsha, Dalian, Fuzhou, Guangzhou, Harbin, Hangzhou, Hefei, Jinan, Kunming, Nanjing, Nanning, Qingdao, Shanghai Hongqiao, Shenyang, Taiyuan, Tianjin, Wuhan, Xi'an, Xining, Yinchuan, Changchun, Zhengzhou, Chongqing, Haikou , Guilin, Liuzhou, Chengdu, and Ningbo

Vancouver, Bali, Sydney, Melbourne, Ho Chi Minh, Bangkok, Los Angeles, Jakarta, Tokyo, Siem Reap, Osaka, and Sabah

Special Passengers Services

Unaccompanied children, the elderly, pregnant women, the disabled, etc.

Families with children or couple travelers

Special Meals

• Dedicated check-in counters, boarding passages and guides are assigned to ensure that passengers with special needs enjoy same safe, convenient and quick access just as other passengers do.

• Xiamen Airlines adopts a people-centered approach, providing whole-process, personalized service themed on “Love You All the Way”.

• Xiamen Airlines provides special meals such as Chinese and Western strict vegetarian food, Western lacto-vegetarian food, halal food, diabetes diet and baby food. Passengers can apply via Xiamen Airlines' website, APP, and WeChat official account.

• The company also developed an e-commerce platform to deliver gourmet food straight to customers’ doorstep

Customer Complaint ManagementOn March 15, 2019, CAAC set up “12326” hotline to supervise service quality and urge airline companies and airports to properly handle passenger complaints. Xiamen Airlines took prompt action to increase the efficiency of complaint management.

Customized Services

Xiamen Airlines has upgraded membership system, identifying passengers as five groups: black diamond, platinum, gold, silver and ordinary, so as to provide them with better tailored services.

Complaint Closed Loop Management

Establish a decision system to handle complaints

Improve standards and procedures for handling complaints

Design surveys about customers’ satisfaction with handling complaints

Improve complaint closed loop management

Improve complaint management and service quality based on the understanding of CAAC’s four priorities

P D C A

Systems Information Mechanisms

External: Synergy

Upgrade service quality management system

Synergize CAAC’s complaint handling working group with complaints channel

Revise performance evaluation indicators to improve complaint management system

Early warning mechanism to

manage service risks

Data platform to monitor service

quality

WeChat group interlinked with

customer complaints

Internal: Methods

16.8In 2019, Xiamen Airlines’ complaint rate was

anking 2nd among eight airline companies which provide all-encompassing services in China, up five places compared to the same period last year

per million

Smart Travel

• Provide self-service check-in for six international routes

including Jakarta, Bali, Bangkok, Siem Reap, Phnom Penh, and Sihanoukville

• Ensure dynamic boarding pass is displayed on omni-channel self-service check-in kiosks and provide reminder service after passengers purchase from the kiosks. Statistics show that

utilization rate of kiosk peaked at 72.3%, and that of electronic boarding pass

registered a year-on-year increase of 68%.

• When the self-service baggage check-in equipment was put into use

in Xiamen Gaoqi International Airport Terminal 3, Xiamen Airlines simultaneously introduced electronic baggage collection service which is independently developed

by the company. This means that the whole process of ground service at

Xiamen terminal is automated.

• Xiamen Airlines provides paperless customs clearance and boarding services at 57

domestic destinations.

• Launch "Lounge Applet" to provide one-click services of rest coupon purchase, food order and boarding reminder

• Launch online self-service to check the status of leftover

items

• The self-service comes in three forms: WeChat Applet, WeChat

service account and Xiamen Airlines APP

Check-in

Baggage Check-in

Customs Clearance & Boarding

Lounge

Baggage Inquiry

Domestic Destinations

Flight PunctualityThe company has strengthened coordination with relevant authorities, increasing the punctuality rate by

throughout the year.13.81%



293,000304.9 18,000

Xiamen Airlines’ cross-border e-commerce supervision center was put into operation in March 2019.

tons

m2

By the end of December 2019the center had examined

articles of imported and exported goods weighing

To satisfy the need, Xiamen-based freight station was expanded to

for cross-border e-commerce.

Service Improvement

IT Application

A dedicated initiative was launched to address major problems that may harm service quality.

Online Marketing System

Expand delivery network to address challenges in last-mile delivery and enhance competitiveness

Effortless Operation

Harness the Power of Smart Technologies

Baggage operation management system was optimized, and reminder functions for baggage that has reached sorting and claim areas were added to reduce the likelihood of sorting errors.

Xiamen Airlines has developed an online marketing system, designed cargo structure that is dedicated to transporting goods, set price for door-to-door delivery and freight delivery, and added doorstep pickup and delivery services. All this is to address challenges in last-mile delivery and provide customers with a door-to-door freight transportation solution.

Xiamen Airlines renewed partnership with 16 delivery companies, and signed two supplementary agreements to increase delivery accessibility, and provided more services such as dedicated delivery vehicles and early morning delivery.

Xiamen Airlines has established a self-service pick-up system at freight stations in Xiamen and Fuzhou. Freight owners can help themselves with the whole process of identity verification, self-service pick-up, self-service payment, and printing the bill of lading. In other words, traditional pick-up process is simplified, the efficiency of pick-up increased and customer service improved.

Xiamen Airlines has introduced automatic guided vehicles (AGV driverless forklifts) to increase operation efficiency and operational safety at freight warehouses.

Freight ServiceTransformation of Cross-border E-commerce



Employees’ dedication and devotion to work helps a company grow. Keenly aware of this fact, Xiamen Airlines includes “family happiness and personal growth” into corporate purposes, and spares no effort to honor our family commitment, a concept that includes both a big family embodied by Xiamen Airlines, and small families built by our employees. We are fully convinced that as long as the big family flourishes, employees can savor the happiness and warmth of their small families. The close ties forged between the big family and small families will lend constant impetus to the company’s development.

EmployeePersist in people-centered approach to achieve win-win growth



Employee StructureTotal number of employees: 20,923 (not including subsidiaries and subordinate unit)

Regional Distribution

6619

2326

11346

632

Age 50 or above

Age 30 or below

Age 30-39

Age 40-49

136207185

117 International

Xiamen

Domestic(other than Xiamen)

109526233

2447 1291Bachelor degree

OthersMaster degree or above

College degree

Educational Status Age Group

Optimize Benefit Mechanism

Xiamen Airlines has adopted “a small group-based management method”, one of the two principal tools for the Amoeba Management System, which has been widely adopted by companies around the world to increase revenue. To ensure this effective method achieves desired results, we have established an input-output evaluation mechanism, and piloted a performance-oriented mechanism that can reflect salary dynamics. This is an incentive mechanism indicating “work more, earn more; high efficiency, rich reward”, creating a closer link between salary and work performance.

Innovate Salary Distribution Mechanism

Harness the Power of Technologies to Serve Employees

Pilot


Ground Service

Marketing

Operational Control

Inflight Security

Flight Attendant

Others

IT 12%25%

2%

2

7%4%

24%

9% 15%

Type of Duty

Female

Gender Ratio

Male

13834

7089

Safeguard Rights and Interests

• Launch “e-governance kiosk” to ensure employees access nearest and instant services

• Provide employees with online consulting services, having received around 21,728 inquiries in 2019, which accounts for 17% out of 125,012 consulting services

• Update work permit to ensure employees enjoy all-inclusive services including meals, transportation, business cards and access control and etc.

• Launch online shop for employees to select corporate gifts and care packages

Expand the coverage of supplementary medical insurance

Xiamen Airlines ensures that new employees who have just completed probation period can access emergency and inclusive supplementary medical insurance, the coverage of which has expand to nearly 6,000 employees.

Expand the coverage of enterprise annuity

Any employee who has completed probation period is entitled to enterprise annuity. At the same time, the attribution rule of the enterprise’s payment rights and interests was adjusted to ensure employees who have been working for eight years can own the fund.

Increase the efficacy of supplementary medical insurance

Medical expenses exceeding the amount covered by severe illness insurance can be covered by emergency supplementary medical insurance. Employees who have been covered by group life accident insurance can be remunerated with about RMB 50,000-400,000 that had been paid by themselves according to new rules of emergency supplementary medical insurance.

Ensure employees enjoy more benefits when taking flight

Xiamen Airlines has taken the following measures: upgrading concession ticket system, removing the restriction on intercontinental routes, enabling employees to share free tickets with their family, adjusting preferential discount rates and providing seriously ill employees with tickets to seek medical treatment in hospitals located outside of workplace.



For Xiamen Airlines, employees are the most valuable assets, holding the key to the company’s development. This understanding has inspired the company to expand channels of promotion and provide diversified training programs to support employees’ growth, preparing Xiamen Airlines to evolve into a top-flight, internationally-acclaimed company that is built to last. The company has introduced Employee Assistance Program (EAP) to address employees’

mental health concerns, set up a 24-hour hotline, provided group counseling courses and live online classes, and offered training sessions themed on marriage, parenting, and career development on a regular basis to help female employees successfully balance work and life. Throughout the year, the company provided more than 5,000 therapy sessions through phone consultation totaling 919 hours and group therapy on 62 occasions.

Achieve Common Development

Enjoy Career Contentment

The company has provided a wide variety of training programs to ensure employees’ training needs are well catered for. Some sessions are to keep them well informed of Party and government policies, some expose them to best practices adopted by Boeing, some enable them to become high-caliber professionals. In other words, Xiamen Airlines has attached equal importance to training personnel to perform different levels of tasks and to training top-notch professionals for a few key positions. At the same time, acting on the Party’s requirements of launching awareness campaigns, the company organized an exhibition under the theme of “reflecting on our founding mission”, providing an invaluable opportunity for more than 1,380 employees in 40 groups to draw inspiration from General Secretary Xi Jinping’s guidance for Xiamen Airlines.

Career Ladder and Career PathXiamen Airlines has built three career ladders and two career paths to support employees’ pursuit of professional growth, so that they can unleash their fullest potential.

Future-oriented Talent Development To inject fresh impetus to future development, Xiamen Airlines has concluded recruitment agreements with designated colleges, and set up scholarships and teacher incentive funds. In 2019, the company provided RMB 1.05 million for Xiamen University, Fuzhou University, and Civil Aviation University of China.

Chairman/CEO/President

Executive Vice President /

Chief Officer

SVP/VP

Director

Manager

Managerial Position

Senior Manager

Senior Specialist

Manager

Specialist

Staff

Professional Posts

Senior Supervisor Engineer


Technician


Novice Technician

Supervisor Engineer

Chief Engineer

Engineer

Technical Post

Promotion Channel of

Managerial Position

Promotion Channel of

Technical Post

Send care packagesThe company set up a dedicated fund worth nearly RMB 2.5 million. With this fund, over 8,000 care packages were sent out to employees at all kinds of posts in all branches, subsidiaries, frontline units, and overseas offices. The receivers include about 300 role models, retired officials, and veterans.

Serious illness mutual assistance programThe company raised a fund of nearly a million yuan to ensure all employees access medical insurance provided by Xiamen Municipal Labor Union, and to finance serious illness mutual assistance program for female employees. Throughout the year, nearly 1.1 million yuan was allocated to help 270 employees seek hospitalization, receive serious illness subsidies, and access bereavement benefits.

Care for herThe company set up 16 lactation rooms, held salon sessions under the theme of “Becoming a Wise Woman to Define the Wisdom of Life”, and launched activities themed on “Express Gratitude for Our Mom”. These events have helped our female employees successfully deal with challenges in life, and find the right balance between work and life.

Provide Diversified Training Programs

Manage Mental Health

256

29%4000

training programs were provided throughout the year

Management-themed training opportunities register a year-on-year increase of

Over

sessions for new employee orientation

300Nearly

training sessions to keep employees well informed of Party and government policies

Care for Our Employees



Employee Enrichment Events

These events have delivered multiple outcomes: enriching their lives, providing them with more opportunities to make friends, ensuring corporate culture resonate with more employees, and forging a closer bond among employees, and between employees and the company.

Keep fitThe first corporate sports day was held, participated by more than 4,000 employees from branches and subsidiaries held by Xiamen Airlines. This event built up momentum of fitness-for-all program launched by the company, and acted as a valuable supplement to regular fitness programs such as badminton and volleyball.

Seek spiritual resonanceThe company created a program themed on “One-Hour Reading” for employees, and organized five reading events, so as to encourage employees to put down the phone, and seek self-improvement through reading.

Strengthen personal connectionsThe year 2019 marks the 70th anniversary of the founding of the People’s Republic of China and the 35th anniversary of the establishment of the company. To celebrate the two milestone events, the company organized a mass wedding for 35 couples, and held a series of activities such as “Love Brings us Together on Chinese Valentine’s Day: the 2nd Session Decompression Conference of Xiamen Airlines” and “Talent Show for New Employees.”

Improve team cohesionThe company organized “the 8th Session Xiamen Airlines Top Ten Role Models Selection”, based on five measurements: pursuing excellence, promoting quality workmanship, showing ongoing devotion to work, daring to be a trailblazer, and inspiring co-workers to be dedicated to their job.

72 73Index of GRI Indicators



Table of Contents Alignment with GRI Standards

About This Report

Address by Chairman

About Us

2019 Highlights

Sustainable Development

United to Fight COVID-19

Carry Out Precision Poverty Alleviation

Encourage Volunteer Service

Cooperation on Public Welfare Undertakings

Strengthen Supplier Relationship Management (SRM)

Safety

Strengthen Safety Management

Make Our Skies Blue Again

Create Green Cabin

Passenger Service

Safeguard Rights and Interests

Enjoy Career Contentment

Share Our Passion with More People

Freight Service

Achieve Common Development

Improve Passenger Safety

Guarantee Aviation Safety

Promote Occupational Safety

203-1、413-1、415-1

102-45、102-46、102-50、102-52、102-53、102-54

103-2、203-1、203-2、302-4、305-5

102-14、102-15

102-12、102-29、102-31、102-33、102-34、102-40、102-42、102-43102-44、102-47、103-2

102-1、102-2、102-3、102-4、102-5、102-6、102-7、102-11、102-16、102-17、102-18、102-22、103-2、

205-1、205-2、205-3、413-1、417-1、417-2

203-1、203-2、204-1

416-1

203-1

416-1

203-1

417-1

102-9、204-1、414-1、414-2

403-3

416-1

Society

Alignment with GRI Standards

Services

Employee

302-1、302-4、302-5、305-1、305-4、305-5

302-1、302-4、302-5、417-1

102-12、102-13

416-1、417-1

417-1

102-8、401-2、405-1

404-2

401-3、403-3、403-4

102-55

Ensure Ground Operation Safety

Table of Contents

Environment


about this report - xiamen airlines

Documents